BRIDGEWATER, N.J.--(EON: Enhanced Online News)--Synchronoss
Technologies, Inc. (NASDAQ: SNCR), the leader in mobile cloud
innovation and software-based activation for mobile carriers, retailers
and OEMs around the world, today announced financial results for the
fourth quarter and full year 2014.

“As we enter 2015, we remain focused on
continuing to drive top line growth and increased profitability as a
result of the investments we have been making and our global leadership
position in both Activation and Personal Cloud.”

“The fourth quarter provided a strong finish to 2014, with financial
results that exceeded our expectations, and were highlighted by
year-over-year Cloud Services revenue growth of 61% and improved
Activation Services revenue growth of 16%,” said Stephen G. Waldis,
Founder and Chief Executive Officer of Synchronoss. “We’ve had a number
of exciting business developments in recent months, including a major
expansion of our multi-year agreement with Verizon Wireless and entering
into an agreement to acquire certain F-Secure’s cloud assets. We believe
that our expanding cloud services customer base, coupled with greater
opportunities for subscriber adoption and utilization, provide a long
runway for growth in this dynamic market.”

On a GAAP basis, Synchronoss reported net revenues of $130.2 million,
representing an increase of 34% compared to the fourth quarter of 2013.
Gross profit was $77.6 million and income from operations was $20.5
million in the fourth quarter of 2014. Net income was $13.6 million,
leading to diluted earnings per share of $0.30, compared to $0.39 for
the fourth quarter of 2013.

On a non-GAAP basis, Synchronoss reported net revenues, which adds back
the purchase accounting adjustment related to revenues for certain
acquisitions, of $130.9 million, an increase of 34% compared to the
fourth quarter of 2013. Gross profit for the fourth quarter of 2014 was
$79.9 million, representing a gross margin of 61%. Income from
operations was $36.2 million in the fourth quarter of 2014, representing
a year-over-year increase of 44% and an operating margin of 28%. Net
income was $24.2 million in the fourth quarter of 2014, up from $16.4
million in the year ago period. Diluted earnings per share were $0.53
for the fourth quarter of 2014, compared to $0.41 for the fourth quarter
of 2013.

A reconciliation of GAAP to non-GAAP results has been provided in the
financial statement tables included in this press release. An
explanation of these measures is also included below under the heading
"Non-GAAP Financial Measures."

“We are pleased with our fourth quarter results from both a financial
and operational perspective,” said Karen L. Rosenberger, Chief Financial
Officer and Treasurer. “As we enter 2015, we remain focused on
continuing to drive top line growth and increased profitability as a
result of the investments we have been making and our global leadership
position in both Activation and Personal Cloud.”

Other Fourth Quarter and Recent Business Highlights:

Cloud Services revenue accounted for $63.4 million of non-GAAP
revenue, representing approximately 48% of total non-GAAP revenue and
growing 61% on a year-over-year basis.

Activation Services revenue accounted for $67.5 million of non-GAAP
revenue, representing approximately 52% of total non-GAAP revenue and
growing 16% on a year-over-year basis.

Subsequent to the end of the fourth quarter, Synchronoss entered into
an agreement to acquire certain assets from F-Secure for $60 million
in cash. The acquisition of F-Secure assets will significantly expand
Synchronoss’ relationship with global customers worldwide while
strengthening its competitive position in the Personal Cloud.

Full Year 2014 Summary Financial Results

On a GAAP basis: revenues for the full year 2014 were $457.3 million,
an increase of 31% compared to $349.0 million in the prior year. Gross
profit was $272.9 million, income from operations was $62.3 million
and net income was $38.9 million, leading to full year 2014 diluted
earnings per share of $0.92.

On a Non-GAAP basis: revenues for the full year 2014 were $458.6
million, an increase of 30% compared to $352.5 million in 2013. Gross
profit was $280.2 million, representing a gross margin of 61%, and
income from operations was $118.1 million, representing an operating
margin of 26%. Net income was $76.8 million for the full year 2014,
leading to diluted earnings per share of $1.79, an increase of 35%
from $1.33 in the prior year.

Conference Call Details

In conjunction with this announcement, Synchronoss will host a
conference call today, February 5, 2015, at 8:30 a.m. (ET) to discuss
the company's financial results. To access this call, dial 877-703-6108
(domestic) or 857-244-7307 (international). The pass code for the call
is 62594511. Additionally, a live web cast of the conference call will
be available on the “Investor Relations” page on the company’s web site www.synchronoss.com.

Following the conference call, a replay will be available for a limited
time at 888-286-8010 (domestic) or 617-801-6888 (international). The
replay pass code is 89427171. An archived web cast of this conference
call will also be available on the “Investor Relations” page of the
company’s web site, www.synchronoss.com.

Non-GAAP Financial Measures

Synchronoss has provided in this release selected financial information
that has not been prepared in accordance with GAAP. This information
includes historical non-GAAP revenues, gross profit, operating income,
net income, effective tax rate, earnings per share and cash flows from
operating activities. Synchronoss uses these non-GAAP financial measures
internally in analyzing its financial results and believes they are
useful to investors, as a supplement to GAAP measures, in evaluating
Synchronoss’ ongoing operational performance. Synchronoss believes that
the use of these non-GAAP financial measures provides an additional tool
for investors to use in evaluating ongoing operating results and trends,
and in comparing its financial results with other companies in
Synchronoss’ industry, many of which present similar non-GAAP financial
measures to investors. As noted, the non-GAAP financial results
discussed above add back the deferred revenue write-down associated with
acquisitions, fair value stock-based compensation expense,
acquisition-related costs which includes integration costs, changes in
the contingent consideration obligation, deferred compensation expense
related to earn outs and amortization of intangibles associated with
acquisitions.

Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. Investors are encouraged to review the reconciliation of
these non-GAAP measures to their most directly comparable GAAP financial
measures as detailed above. As previously mentioned, a reconciliation of
GAAP to non-GAAP results has been provided in the financial statement
tables included in this press release.

About Synchronoss Technologies, Inc.

Synchronoss (NASDAQ: SNCR) is the mobile innovation leader that provides
personal cloud solutions and software-based activation for connected
devices across the globe. The company’s proven and scalable technology
solutions allow customers to connect, synchronize and activate connected
devices and services that empower enterprises and consumers to live in a
connected world. For more information visit us at www.synchronoss.com.

Forward-looking Statements

This document may include certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to, plans,
objectives, expectations and intentions and other statements contained
in this press release that are not historical facts and statements
identified by words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," “outlook” or words of similar
meanings. These statements are based on our current beliefs or
expectations and are inherently subject to various risks and
uncertainties, including those set forth under the caption "Risk
Factors" in Synchronoss’ Annual Report on Form 10-K for the year ended
December 31, 2013 and other documents filed with the U.S. Securities and
Exchange Commission. Actual results may differ materially from these
expectations due to changes in global political, economic, business,
competitive, market and regulatory factors. Synchronoss does not
undertake any obligation to update any forward-looking statements
contained in this document as a result of new information, future events
or otherwise.

The Synchronoss logo, Synchronoss and Synchronoss Integrated Life are
trademarks of Synchronoss Technologies, Inc. All other trademarks are
property of their respective owners.